The Croatian authorities are poised to abolish the tight capital and exchange controls imposed late in 2003, according to reports by the Croatian press of interviews with Adolf Matejka, Vice-Governor of the Croatian National Bank (CNB).
Matejka told journalists that the restrictions – in 2003 foreign investment in short term securities was restricted, and a twelve month lock-up period was imposed on sales of securities to domestic investors -will be abolished.
“The Vice-Governor has confirmed our expectations about abolition and its timing,” says Sinisa Juric, head of custody at HVB Splitska banka in Zagreb. “It seems the only issue that is still being discussed within CNB is whether government short term paper will continue to be protected against foreign purchases or not.”